Muted Inflation Reading Likely Gives Fed Leeway on Rates

The slow growth in consumer prices in July could give Federal Reserve officials some breathing room amid debate over how long to keep short-term interest rates near zero.

The consumer-price index, which measures how much Americans pay for everything from rent to doctors' visits, rose a seasonally adjusted 0.1% from a month earlier due partly to a drop in energy costs, the Labor Department said Tuesday. The index was also up 0.1%...